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A Year for Planning

As far as basic rates and allowances go, the 2026-27 tax year is little unchanged from the previous year. For example, the ISA allowance remains at £20,000 whilst the Junior ISA limit stays at £9,000. Similarly, the dividend allowance is unchanged at £500 with the tax-free interest allowance also unaltered at £1,000 for basic rate taxpayers and £500 for high-rate taxpayers.

Nevertheless, 6 April 2026 did see some changes - most notably in Agricultural and Business Property relief.  And looking ahead to 6 April 2027 a number of other significant changes come into force which could potentially affect all investors. With effect from that date, although the overall ISA limit remains unchanged, within this limit the maximum which under 65s can put into a Cash Isa will be £12,000.

At the same time unused pension funds will be drawn into inheritance tax. The OBR estimates that that change could add over ten thousand estates to the inheritance tax system in the 2027/28 tax year alone. More estates could also be impacted by the loss of the residence nil band rate as pension funds take estates over the £2million taper threshold.

This then is a year for planning; for reviewing current and future expectations in the light of the 2027/28 tax changes. If you are looking for advice on pensions or if your situation has changed and you may therefore need to review your existing pensions or investments, contact Beckworth by using one of the links on our website.